Netflix Tests AI-Powered Ads to Boost Cheaper Subscription Tier

Netflix is experimenting with different ad formats, including interactive mid-roll and pause ads powered by generative AI, to make its cheaper subscription tier more attractive. These ads will start rolling out in 2026. The ad-supported plan, launched in November 2022, now boasts 94 million subscribers, representing a significant portion of Netflix's total subscriber base of 300 million and a substantial growth since its launch. Half of new subscribers are opting for the ad-supported $8 plan instead of ad-free options.